Golden Finance reported that Bloomberg cryptocurrency market analyst Jamie Coutts believes that many of Ethereum’s competitors may struggle to recover in the next bull market cycle because the rise of Ethereum L2 is taking away revenue from its competitors. He noted: “The rise of L2 means that the Ethereum network has begun to take back market share from its Alt-L1 (alternative layer 1) counterparts. Over the past year, L2 active addresses have grown 2x faster than Alt-L1 (although base is lower)".
Coutts said alternative smart contract platforms face a number of existential threats, such as inflationary token economics, excessive block space and Ethereum’s rapidly growing network effects. He predicts that most alternative blockchains will likely be phased out of the market within the next few years.
Coutts said alternative smart contract platforms face a number of existential threats, such as inflationary token economics, excessive block space and Ethereum’s rapidly growing network effects. He predicts that most alternative blockchains will likely be phased out of the market within the next few years.